London-based cryptocurrency liquidity provider and over-the-counter (OTC) trading firm B2C2 has launched a gold derivative product, claiming to be the first in the market to offer gold derivative priced and settled in BTC and other cryptocurrencies.
B2C2 founder and CEO Max Boonen shared that the new product will allow institutional investors to trade gold without a need to buy and sell the underlying asset. Further, he added that trading gold in a derivative form is simpler than trading with cash underlier “for a variety of operational reasons” and that the product has resulted from the clients' demand.
Boonen expects this demand to grow due to instability of macroeconomic environment:
“Conflicting narratives abound, fuelling market activity, and we expect demand to only grow for ways to gain and manage exposure to deflationary assets such as gold and bitcoin.”
The minimum trade size equals an ounce of gold, which is currently priced around $1,500. The settlement is available in bitcoin, gold-pegged PAXG and other cryptocurrencies. The product is available to “eligible counterparties” and “professional clients”, in accordance with FCA regulations.